Core Viewpoint - Warren Buffett's Berkshire Hathaway is in talks to acquire Occidental Petroleum's chemical business, OxyChem, for approximately $10 billion, which would be its largest acquisition since 2022 [1] Group 1: Acquisition Details - The potential acquisition of OxyChem could be finalized within days and represents a significant move for Berkshire Hathaway, which is already Occidental Petroleum's largest shareholder with a 28% stake valued at nearly $13 billion [1] - OxyChem is projected to contribute $4.92 billion, or 18% of Occidental's total sales of $26.73 billion in 2024 [1] - This acquisition would mark Berkshire's second major investment in the chemical sector, following its nearly $10 billion purchase of Lubrizol Corp in 2011 [1] Group 2: Historical Context - Berkshire Hathaway previously acquired a portion of Occidental's preferred shares during the acquisition of Anadarko Petroleum in 2019 and has been increasing its stake in Occidental since 2022 [2] - Buffett has expressed confidence in Occidental's management, particularly CEO Vicki Hollub, which influenced his decision to increase holdings in the company [2] Group 3: Financial Position - As of June 30, Berkshire Hathaway had cash and cash equivalents totaling $344 billion, close to record highs, indicating a strong liquidity position for potential investments [3] - Buffett has indicated a willingness to deploy significant capital for the right investment opportunities, having nearly pursued a $10 billion investment earlier this year [3] - Occidental's stock has seen a decline of over 4% this year, attributed to falling oil prices and concerns regarding the company's debt burden [3]

Core Viewpoint - Berkshire Hathaway, led by Warren Buffett, is in talks to acquire Occidental Petroleum's chemical business, OxyChem, for approximately $10 billion, which would be its largest acquisition since 2022 [1][2]. Group 1: Acquisition Details - The potential acquisition of OxyChem could be finalized within days and would mark Berkshire's largest deal since acquiring Alleghany for $11.6 billion in 2022 [2][6]. - Occidental Petroleum, headquartered in Houston, has a market capitalization of about $46 billion and is primarily known for its oil and gas operations. Berkshire is already the largest shareholder, holding over $11 billion in Occidental stock, representing a 28.2% stake [2][7]. - OxyChem, the chemical division of Occidental, generated nearly $5 billion in sales over the past 12 months, producing various chemical products used in water chlorination, battery recycling, and papermaking [2]. Group 2: Historical Context - This would be Buffett's second significant investment in the chemical sector, following the nearly $10 billion acquisition of specialty chemicals producer Lubrizol in 2011 [5]. - Buffett began investing in Occidental Petroleum in 2019, initially purchasing $10 billion in preferred stock to assist CEO Vicki Hollub in acquiring Anadarko Petroleum [7]. Group 3: Financial Position - Occidental has been actively selling non-core assets to reduce its debt, having repaid $7.5 billion in debt as of August [9]. - Berkshire Hathaway holds a record $344 billion in cash and U.S. Treasury securities, indicating a strong liquidity position and a preference for acquisitions over holding cash [10][11].

Core Viewpoint - Berkshire Hathaway, led by Warren Buffett, is in talks to acquire Occidental Petroleum's chemical division OxyChem for approximately $10 billion, marking its largest acquisition since 2022 and a significant investment in the chemical industry [1][3][4]. Group 1: Acquisition Details - The potential acquisition of OxyChem could be finalized within days and represents a strategic move for Berkshire, which already holds a 28.2% stake in Occidental Petroleum valued at over $11 billion [4]. - Occidental Petroleum, headquartered in Houston, has a market capitalization of around $46 billion and is primarily known for its oil and gas operations [4]. - OxyChem, the chemical division, generated nearly $5 billion in sales over the past 12 months, producing various chemical products used in water chlorination, battery recycling, and paper manufacturing [4]. Group 2: Historical Context - This would be Buffett's second major investment in the chemical sector, following the nearly $10 billion acquisition of specialty chemicals producer Lubrizol in 2011 [7]. - Berkshire's last significant acquisition was in 2022 when it agreed to purchase insurance company Alleghany for $11.6 billion [8]. Group 3: Investment Background - Buffett began investing in Occidental Petroleum in 2019, initially purchasing $10 billion in preferred stock to assist the company in acquiring Anadarko Petroleum [9]. - Since then, Occidental has faced challenges, including significant debt and criticism from activist investors, leading to asset sales to reduce debt by $7.5 billion [10]. Group 4: Financial Position - Berkshire Hathaway currently holds a record cash and U.S. Treasury bond position of $344 billion, indicating a strong financial capacity for acquisitions [11]. - Buffett has expressed a preference for acquiring businesses over holding cash, emphasizing the value of ownership in good companies [12].